European Commission to invest EUR 1.07B in defense projects, including cooperation with Ukraine
The European Commission will invest EUR 1.07 billion in 57 new defense projects under the 2025 European Defense Fund (EDF), including initiatives aimed at strengthening cooperation with Ukraine's defense industry.
According to the European Commission's press service, these investments will support the goals set out in the Defense Readiness Roadmap 2030 and provide essential funding for the EU's four major defense flagships: the European Drone Defense Initiative, the Eastern Flank Watch, the European Air Shield and the European Space Shield.
The 57 projects selected under the 2025 EDF cover a wide range of critical sectors, including artificial intelligence (AI), cyber defense, drones and counter-drone systems.
A total of EUR 675 million will support 32 capability development initiatives and EUR 332 million will go to 25 research projects.
More than 15 projects will support the four European Readiness Flagships. For example, project All flagship initiatives will also benefit from cross-cutting projects focused on sensors, digital transformation or cyber technologies.
The EU is also deepening its cooperation with the Ukrainian defense industry, supported by the EU Defense Innovation Office in Kyiv. This partnership aims to better integrate Ukraine into the European industrial base. One key initiative, Project STRATUS, will develop an AI-powered cyber defense system for drone swarms. It includes a Ukrainian subcontractor, ensuring the project benefits from direct battlefield experience.
To attract new talent, several projects focused on mass-producing affordable drone munitions will launch ‘sub-calls' for start-ups and small and medium-sized enterprises (SMEs). These smaller companies can receive up to EUR 60,000 each to integrate new innovations, helping those without previous defense experience enter the market.
Ukrainian entities can also apply, the European Commission said.
The selected projects involve 634 entities from 26 EU Member States and Norway, reflecting a strong commitment to European defense cooperation. SMEs are central to this round, making up over 38% of participants and receiving more than 21% of the total funding.
Following the selection of the successful proposals, the Commission will now enter into the grant agreement preparation with the consortia, with the goal of signing agreements before the end of the year.
The EDF is the EU's primary instrument to support defense research and development cooperation, with a budget of EUR 7.3 billion for 2021-2027. It fosters collaboration among companies of all sizes and research institutions across the EU and Norway. Additionally, the EDF is driving the transformation and expansion of the EU defense ecosystem with the EU Defense Innovation Scheme (EUDIS) at its core.
The fifth round of EDF calls has attracted a record 410 proposals representing a 37% increase from last year.